With the economy gaining steam and commercial real estate prices becoming more opportunistic for buyers, now is the ideal time to decide where you want to establish your business long term.
We all know the pros and cons of both sides of the coin as far as lease vs own is concerned. A long term lease allows you flexibly and little to no overhead, whereas ownership gives you the ability to take quite a few deductions on your taxes and more importantly, you control your real estate future.
Since commercial real estate prices are levelling off, it is an opportune time for business owners to make the move and own real estate. Here are some reasons you’ll want to consider doing so.
- You’re the owner of the property and your company pays the owner (you) rent.
- Income through rent typically increases over time
- You play a part in your immediate vicinity in terms of where real estate is headed
- There’s no payroll tax since rent is considered passive income
- Your company pays all property expenses if you sign a NNN lease
- If and when you decide to sell your business, you can lease the real estate to lock in a retirement income
- You get to deduct interest and depreciation on your personal taxes
So before you decide to extend your existing lease, consider the aforementioned points and see if it makes sense for you to buy property for your business. You’re always more than welcome to contact us at Diliberto Real Estate for professional advice and guidance.